Insurance Vocabulary

Insurance is defined as:

• A contract in which an individual receives financial protection against losses from an insurance company.

• A method of saving money for future expenses.

• A type of investment that guarantees high returns.

• A government program to provide free healthcare.

What is a Policy in terms of insurance?

• A contract between the insurer and the insured

• A type of investment plan

• A government regulation

• A financial statement

Coverage in an insurance context refers to:

• The amount of risk or liability covered for an individual or entity by way of insurance services.

• The total premium paid by the insured.

• The duration of the insurance policy.

• The number of claims filed by the insured.

What is a Premium in insurance?

• A type of insurance policy

• The amount paid for an insurance policy

• The insurance coverage limit

• A discount on insurance

What is the Grace Period in an insurance policy?

• A period during which the policyholder can pay the premium without losing coverage

• The time when the policy is first issued

• The period after the policy expires

• The time when the policyholder can claim benefits

What is a Deductible in insurance terms?

• A fixed amount you pay before insurance covers the rest

• The total amount covered by insurance

• The monthly payment for insurance

• The percentage of a claim paid by the insurer

What is a Claim in the context of insurance?

• A request for payment under an insurance policy.

• A type of insurance policy.

• A legal document outlining insurance terms.

• A discount on insurance premiums.

What are Copays in medical insurance?

• A type of deductible

• A fixed amount paid for a covered service

• The total cost of insurance

• A type of insurance plan

The Out-of-Pocket Maximum in insurance is:

• The total amount you pay for covered services in a year before your insurance starts to pay 100%.

• The monthly fee you pay for your insurance plan.

• The amount you pay for each medical service before your insurance starts to pay.

• The percentage of costs you pay after meeting your deductible.

What is Liability Insurance?

• A type of insurance that provides protection against claims resulting from injuries and damage to people and/or property

• A savings account for future expenses

• A type of investment plan

• A government bond